HTA Real Estate have acquired the GXO Logistics premises at Selding Road, Washington on behalf of Cable Properties. The investment provides over 7 years income to a secure tenant on a mission critical location for GXO at a rent of £416,500 per annum. The building extends to 124,689 ft² and includes 8 loading doors and 360-degree site circulation - making it ideal for logistics distribution purposes. The asset also benefits from a large overall site extending to 11.1 acres in the heart of Washington.
Douglas Cranston, Director of Capital Markets at HTA Real Estate commented 'We were delighted to acquire this asset on behalf of our regional client, Cable Properties. The acquisition dovetails with their current investment requirement mandate and offers c. 7 years income to a 5A1 covenant with guaranteed growth with the upcoming RPI linked review. This reversionary income stream will improve the return by c. 100 basis points in the next 2 years or so. This, coupled with the strong residual potential of the site, should ensure yield performance going forward'.
